Dutch financial institution ING cuts carbon emissions from lending to energy trade
LONDON (Reuters) – Dutch lender ING INGA.AS has sharply minimize carbon emissions from its loans to the ability trade over the previous 12 months after reducing funding for coal-fired energy crops and growing funding for renewables, he stated Thursday.
ING stated it lowered its direct publicity to coal-fired energy crops by 22% and elevated funding for renewable power manufacturing by € 1.9 billion in 2019.
ING is a part of a small group of banks looking for to cleared the path by aligning a complete of two.4 trillion euros in loans with the 2015 Paris local weather settlement, aimed toward holding world warming properly beneath 2 levels Celsius above pre-industrial requirements by 2050.
In collaboration with BBVA, BNP Paribas, Customary Chartered and Société Générale and the non-profit assume tank 2 ° Investing Initiative, ING has began to develop scientific strategies and instruments to assist them measure their impression and information their selections. mortgage.
A key goal of the group is to be open about its efforts, within the hope that different banks will observe their instance. Following an inaugural report final 12 months, Wednesday’s report is the primary time that ING has been in a position to show its year-over-year progress.
For every of the 9 high-emission sectors, ING has outlined a multi-year path over which the depth of the emissions of its loans – the extent of emissions per unit of financial exercise – should change in an effort to obtain the local weather aims.
The most important enchancment was the impression of the financial institution’s loans to the ability technology sector, the place carbon depth – measured in kilograms of CO2 per megawatt hour – was now 14.9% beneath goal trajectory. and forward of schedule.
Emissions depth from the metal and cement sector had been 0.6% and 0.9% beneath their trajectory, respectively, though each represent a comparatively smaller share of the financial institution’s mortgage portfolio.
Nevertheless, not all sectors confirmed enchancment, with lending within the residential actual property market exceeding the sector’s trajectory by 2.4%, hit by sluggish adjustments in enhancing power effectivity. in lots of properties.
ING’s automotive and aerospace mortgage issuance depth was broadly consistent with that of the market as an entire – 0.7% and 0.3% above their respective trajectories – given the comparatively low penetration of low carbon options in each.
ING stated subsequent 12 months that it will be capable of report on the upstream oil and fuel sector for the primary time after agreeing on a strategy with its friends and that it will intention for an absolute drop in lending to the sector by in comparison with its present 3,986 million euros.
Reporting by Simon Jessop; Edited by Alexandra Hudson